EU Council approves €4.2 bln tranche for Ukraine as part of Ukraine Facility program
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Kyiv will receive approximately 4.2 billion euros after the EU Council approved the initial regularly scheduled disbursement of grants and loans from the EU Fund for Ukraine on August 6.
The European Council's press service reports this.
This fund is meant to promote Ukraine's macro-financial stability and facilitate its state administration's functioning.
The Council's decision today confirms that Ukraine has met the prerequisites and completed the reforms outlined in the Ukraine Facility program to receive these funds.
The reforms cover vital areas such as:
- public finance management,
- state enterprises,
- business environment,
- energy,
- demining of territories.
The Council also emphasized the importance of timely allocation of funds in connection with Ukraine's difficult fiscal situation.
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The Ukraine Facility defines the country's intentions for recovery, reconstruction, and modernization and the reforms it plans to implement over the next four years as part of the process of joining the European Union.
For reference:
According to reports, at the European Council meeting, all 27 leaders of the European Union unanimously agreed to include a €50 billion Ukrainian Fund in the EU budget for 2024–2027. Hungary previously blocked this decision.
In his turn, Zelensky, during a video address to the participants of the special EU summit in Brussels, said that the unanimous approval by the European Council of the €50 billion Ukrainian fund is a clear signal that Ukraine and Europe will endure because trust in Europe was at stake.
In February 2024, the European Parliament approved the regulations of the Ukraine Facility program. In accordance with the approved regulations, the 50 billion euro EU support program for Ukraine will operate from 2024 to 2027.
In April, the European Commission supported the Ukraine Plan reform plan proposed by the Ukrainian government within the framework of the Ukraine Facility mechanism, which determines the conditions for receiving 50 billion euros of macro-financial assistance during 2024-2027.
On July 17, the European Commission approved providing Ukraine with a tranche of 4.2 billion euros within the Ukraine Facility. After this decision of the Council of the EU, Ukraine's total financing within the program's framework will reach 12 billion euros.
